'Earnings in the last two days were the worst in 25 years as a cabbie': How the Olympics has hurt my business

The Olympics may have turned to gold medal success for Britain but business in London, the powerhouse of the UK economy, has ground to a halt.

Experts say that a double-whammy of having as many as 1.5million people working from home and the warnings of traffic apocalypse has left the streets of the capital deserted.

Thousands of civil servants who would normally be at their desks in Whitehall have taken advantage of an offer of 'flexible working' while the Games are on.

WEST END THEATRE WORKER: SALES ARE DOWN 40%

Kirsty Woodward, 31, of Barking is a ticket sales agent in the West End's Theatreland:

'Last week turned out to be the worst
we've had all year. We are taking about 40 per cent less than usual and
it's been that way since the opening ceremony.

'We just couldn't believe
it, we look after 40 shows but we are only seeing a few people an hour
through the door. The Government was mad not to put up more screens
showing sports around the city.'

And many big blue-chip firms, including the taxpayer-backed Lloyds Banking Group and Royal Bank of Scotland, have allowed staff to stay away.

Retailers are warning that key parts of London have been turned into 'ghost towns' as workers who would normally be buying lunches, taking taxis, doing some lunchtime shopping or having an after-work drink stay away.

More than half of employers are making changes to their working practices during the Olympics to enable staff to work more flexibly or to allow them to watch key events at work, according to the Chartered Institute of Personnel and Development.

Almost three in ten employers are accommodating requests by staff to work from home. Some 17 per cent said they were extending flexible working opportunities, allowing staff to vary hours, while 13 per cent are actively encouraging staff to work from home.

The UK economy, already suffering the first double-dip recession since 1975, has sunk into deeper trouble with GDP shrinking 0.7 per cent between April and June - a far greater fall than was expected.

The great stayaway in London may contribute to the national economy's woes as it struggles to escape recession over the summer.

George Buckley, UK economist at
Deutsche Bank, said: ‘The risk is that you can’t or don’t do as much
from home, so while people may report similar hours worked their output –
and therefore productivity – will be lower.’

Samuel Tombs, of Capital
Economics, said: ‘The TV coverage of the Olympics will presumably be a
big distraction.’

Pierre
Williams, of the Federation of Small Businesses, said: ‘A lot of small
businesses are feeling very hard pressed: not only are they facing the
ongoing recession, declining consumer confidence and demand, they are
now seeing the expansion of working from home in the public sector.’

Rebecca
Clake of the Chartered Institute of Personnel and Development said:
‘Employers should communicate very clearly what their policy is, for
example, whether employees are allowed to keep track of the Games online
or whether they take a zero-tolerance approach.’

The London Chamber of Commerce estimated that 1.5million of the 5million people who work in London will work from home at some point over the next two weeks. Chief executive Colin Stanbridge said: 'Eighty per cent of companies offer some form of remote working, and I think up to a million and a half employees will take advantage of that at this special time.'

An estimated 800 Ministry of Justice staff are working from home, while around 400 London-based Department for Work and Pensions staff have relocated to offices outside London.

Thin on the ground: This was the scene at London Bridge earlier this week. Many workers have been given the option of working from home during the Olympics

In total, more than 4,000 civil servants normally working in London - around six per cent of the total - are thought to have taken advantage of the offer to work from home.

A Department for Transport spokesman said: 'Indications are that less than six per cent of civil servants are working from home and that many more are choosing to do their bit by adapting their commute, with some changing their choice of transport or route and others the times at which they travel.'

Britain's biggest bank, HSBC, revealed that 40 per cent of its 8,500 staff based in Canary Wharf are working from home - 3,400 individuals. The bank said it was acting on the advice of Transport for London and the Olympics Committee to reduce congestion at some of London's key tube stations during the Games.

Lloyds, one of the main Olympics sponsors, said some of its staff are working from home. The state-backed bank said this includes 'non-customer facing' staff who have to commute from outside the capital.

Hundreds of staff at taxpayer-owned RBS are also expected to work from home and the Bank of England confirmed some staff are also doing so. Drugs giant GlaxoSmithKline, based in West London, said staff have been encouraged to work from home.

Pierre Williams, of the Federation of Small Businesses, said: 'A lot of small businesses are feeling very hard pressed: not only are they facing the ongoing recession, declining consumer confidence and demand, they are now seeing the expansion of working from home in the public sector.'

Rebecca Clake of the Chartered Institute of Personnel and Development said: 'Employers should communicate very clearly what their policy is, for example, whether employees are allowed to keep track of games online or whether they take a zero-tolerance approach.'

HOW THE OLYMPICS STAYAWAY IS AFFECTING LONDON BUSINESSES AND TRADERS

THE HOTEL MANAGER

'Like
every hotel in the West End, we are not full. Everyone was asked to
leave London, so all our regular business guests aren't coming. Last
week we were 45 per cent occupied.

'The biggest drop is in food, drink
and events. I dropped my rates and we are getting a lot of last-minute
bookings - people have seen there are Olympic seats still free.'

THE SPECIALIST TEA SELLER

Andrew Broadstock, manager of The Tea House in Covent Garden:

'Takings
are as much as 30 per cent lower than is usual for this time of year.
It's been particularly terrible since the Olympics started. We were
expecting a lot more customers but footfall has been awfully low.'

THE RESTAURATEUR

'The
Olympics have been a real anti-climax. We expected about 30 per cent
more customers but, in fact, we're down 30 per cent. For four years it's
been: Olympics, Olympics, Olympics, but now it's here it's turned out
to be a flop.'

'£20 a day': Stall holder Irena Povilaviciene

THE MARKET STALL HOLDER

Irena Povilaviciene, 45, from Eltham, South East London, who has a craft stall at Covent Garden:

'There
is nobody about. Last weekend was the worst weekend I've ever had. I
worked for 12 hours on Sunday and only made £80.

'Given that I have to
pay £60 for the stall, with food and travel added to that, I actually
paid to be here.

'On a good Sunday in August I can normally make up to
£450 a day but at the moment it's nothing like that. There were too many
messages warning people to stay away and to plan their journey in
advance.'

THE RICKSHAW DRIVER

Michael MacGilliuray, 41, from Angel Islington, North London:

'I've
worked in central London for five years and this is the emptiest I've
ever seen it. I should be making up to £150 a day but I'm barely
reaching half of that and I'm having to stay out until 1am. The roads
are empty meaning I can get about much faster, which would be a plus if I
only I could get anyone in my rickshaw.'

THE TAXI DRIVER

Paul Simpson, 53, from Chislehurst, Kent (pictured above):

'The
last two days have probably been my worst ever earnings since I started
driving a cab 25 years ago. On Monday, I waited for an hour in the City
and the only job I got was £3.40. I've never seen it this bad. My
earnings are down 25 per cent. 'I've enjoyed watching the Olympics on
TV, but let's just say I'd enjoy watching it a lot more if it was
somewhere else.'

Vasaile Caloianu

THE MIME ARTIST

Vasaile Caloianu, 29, from Stratford, East London, performing on the street in Covent Garden:

'It
is completely dead. London was supposed to be busy but I've been doing
this for six years and I've never seen it so empty.

'It's so bad I feel
like quitting my job. At the moment it's taking four days to make what I
usually make in a day and I have to work seven hours a day instead of
five - as a mime artist that's exhausting.

'This time last year Covent
Garden was heaving, I don't understand why Boris Johnson told everyone
to stay away.'

THE TOY SHOP

A
spokesman for Benjamin Pollock's Toy Shop in Covent Garden said: 'Our
takings are down 60 per cent on last year. To say it's disappointing is
an understatement. It's shocking, and I can only blame all the official
warnings about transport that have scared people away.'

THE ANTIQUE MARKET

Borris
Sosna, of Grays Antique Market near Bond Street, said: 'Our market has
been practically empty. The closure of traffic lanes to official Olympic
traffic only has made people scared to drive in case they get fined for
being in the wrong lane.'

THE INDEPENDENT RETAILER

Lorraine Botbol (below), 49, owner of Danlor shoe shop, Baker Street:

'My husband and I
have owned this shop for 20 years, and most of our customers are office
workers arriving into Baker Street and Marylebone station. We get a lot
of passing trade, but everyone seems to be working from home. Our
takings are 40 per cent down.

VIDEO: Take a tour of 'ghost town' London. There is plenty of space on the bus...